The failure of the Federal Government's mining tax to raise any revenue demonstrates the folly of Labor's capitulation to the big three mining companies, the Greens said today.
Senator for Western Australia Scott Ludlam said Labor should have adopted Treasury's original model or voted for the amendments the Greens moved in the Senate.
"Labor allowed themselves to be bullied by the big mining companies and their inside man, Minister Martin Ferguson. Having watered down the tax, and only applied it to coal and iron ore, the scale of the Government's surrender is now apparent.
"The original Henry mining tax would - in our national interest - have stemmed some of the flow of profits out of the country, but Labor squibbed it.
"The Coalition has demonstrated economic illiteracy of the highest order; opposing any kind of tax whatsoever on mining super profits and making hysterical doomsday predictions which have proven grossly dishonest time and again."
Senator Ludlam said Western Australia had depended too heavily on the mining industry and needed to diversify its economic base.
"The mining boom has flattened trade-exposed industries like tourism, education, and manufacturing, while driving up the cost of living in our state. A strong mining super profits tax could have fostered the diversification of the WA economy by funding training, research and development, and start-up grants to small businesses. Instead, the State's triple-A credit rating is in peril because of tunnel vision on the part of the Labor and Liberal parties."